SINGAPORE: Japanese rubber futures sank on Wednesday, logging their biggest five-day losing streak since late-2020, as US President Donald Trump’s “reciprocal” tariffs kicked in, escalating the global trade war.
The September rubber contract on the Osaka Exchange (OSE) ended daytime trade 5.5% lower at 283.4 yen ($1.95) per kg. Since Trump’s announcement of sweeping tariffs on April 2, prices have tumbled around 18%, their biggest five-day drop since November 2020. The May rubber contract on the Shanghai Futures Exchange (SHFE) plunged 4.05% to 14,330 yuan ($1,949.71) per metric ton.
The most active May butadiene rubber contract on the SHFE sank 7.01% to 11,350 yuan ($1,544.26) per ton.
Trump’s tariffs on dozens of countries took effect on Wednesday, including massive 104% duties on Chinese goods, deepening his global trade war and spurring more widespread selling across financial markets.
Broadly, Asian stock markets were deep in the red, with Japan’s Nikkei tumbling 3.6%. Safe-haven currencies like the yen saw more inflows, with the dollar skidding 0.8% to 145.10 yen. A stronger currency makes yen-denominated assets less affordable to overseas buyers. In response to escalating tariffs, oil prices dropped to their lowest in more than four years.
Natural rubber often takes direction from oil as it competes for market share with synthetic rubber, which is made from crude oil. China’s top leaders plan to convene a meeting as early as Wednesday to discuss measures to boost the economy and stabilise the capital markets, people with knowledge of the matter said.
The front-month rubber contract on the Singapore Exchange’s SICOM platform for May delivery last traded at 157 US cents per kg, down 4.8%.
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